Day: September 22, 2025

Accounting Multiple Choice Question – 22 September 2025

The home of multiple choice questions for all your KS3, KS4 and KS5 Business Studies, Economics and Accounting requirements.

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Which ONE of the following would NOT increase inherent audit risk?

Select ONE answer:

  1. Sample sizes have been calculated incorrectly by the auditor and are too small
  2. A significant number of balances are based on estimates
  3. The financial statements include complex transactions
  4. The company is seeking to raise finance

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 1

  1. Correct == > Incorrect sample sizes and inexperienced audit staff will affect detection risk.
  2. Not correct
  3. Not correct
  4. Not correct

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